Coins or tokens that are sent to a wrong address are considered “burned” which means they are gone forever and no longer usable. It is the equivalent of literally burning fiat bank notes a la KLF. This can be done accidentally, though is sometimes done deliberately to artificially decrease the supply and make the remaining coins more valuable. Some NFT transactions involve burning, for example some “breeding” mechanisms involve burning two NFTs to create a new one.
“Next week they are going to burn 10% of the supply of the token, it’s going to moon!”« Dictionary Menu